BMEP100

We have and pay for this insurance, we call "Loss of License", or Long Term Disability.

So, if a pilot winds up with a condition that means that he can no longer hold a medical, can he retire and continue receiving his LTD payments so long as he is medically disqualified?

If not, I wonder why?

flap

If you retire, you are separated from the company and will no longer receive LTD

You would simply stay on LTD until you are medically able to return to work or you hit retirement age

If you retired, you would lose company 80% subsidy of health insurance as well as LTD benefit

The company subsidy would be based on years of service, but 60% at best

BMEP100

That's what I had heard, but it kinda stinks. (over)Paying into the plan all those years and not being able to take it into early retirement makes sense only to an insurance company exec.

After all, it is disability insurance, not loss of job insurance. Since LTD only pays about 33% of a captain's salary, having the ability to take the lump sum to help supplement would good.

What difference could it make to the plan if the pilot were retired from the company before 65 or not?

Pro2nd

I believe it's 55% at last pay rate up to a maximum of $8000 per month. The good part is that it's tax exempt. In real word terms it comes out to basically min guarantee with no per diem. Unless that comes out to more than 8k a month as that is the cap.

AllenAllert

It's based on you working. Question for you - if you retired at 60, 5 years early and then you become unable to pass a class 1 medical at 62, what pay rate should be used to determine the LTD rate.

AllenAllert

This sounds right. Actually, it is a good program. Talked to a classmate that went on LTD at 54 and will likely never come back because of medical, but still gets a call to verify condition/status. All benefits continue as if active employee (seniority,passes,group insurance rates but not contribution to retirement) I'm not sure it's all accurate but he's happy he paid into the program and hopes United stays in business until he's 65 just for the insurance.

Pro2nd

I forgot to mention the 55% is calculated at your last pay rate at I think 83 hours a month. Since its tax exempt it should come out very close to your current min guarantee. Some simple math figures the pay rate that meets the $8000 a month cap is about $175/hr.

BMEP100

I thought it was an insurance policy.

The reason someone, who doesn't expect to be able to medically return, might want to retire and continue on disability- so that he doesn't leave his lump sum behind at a failing company.

80K a year works out to about 33% for me- and that does not include the B,C fund payments.

This all does not make sense, if it is indeed a real insurance policy. Why would the insurance company care if you could resume your employment? If you medically qualify, the payouts end- if not you are disabled, regardless of the status of the company and your employment status.

Like I said, it is an insurance policy- so I believed, not a job guarantee.

AllenAllert

Not a CAL type and don't know about your promised lump sum but I'm sure there is something in the payout plan for Life Events. There is probably a company out there that will write you the policy exactly the way you want if you're willing to pay for it.

The current policy is designed to help the pilot keep his head above water during the disability period and not have to tap into retirement or saving while hoping to return to work. In most cases the ability to hold onto the company medical insurance during the disability period is a big issue. You may want to talk to the R&I people. I think the R&I committee has a full time lawyer on staff and does answer the phone for the committee chairman.

If you want real world information from some of the guys going out on medical you may want to go to the RUPA website. I'm sure there is a wealth of real experiences concerning the current plan.

As a final note - once you retire, you no longer work for the company and there will be no further handholding - you are on your own!

UAL T38 Phlyer

So, looking at my benefits today, this thread got me curious.

LTD has a dollar amount...is that max-cap, annual, what?

It appears to be about 55-60% of annual, but it doesn't say monthly, yearly, or lifetime cap.